MOTOR TRANSPORTATION FOR RURAL DISTRICTS 19 
modities. Many operators have initiated service with rates so high 
as to drive profitable business away; others have gone to the other 
extreme and in their desire to attract business, have failed to give due 
consideration to operating costs and have lost heavily because their 
rates were too low. There are several factors which should be con- 
sidered in the establishment of rates in any district. The value and the 
fragility of the load bear a direct relationship to the rate which should 
be charged. Very valuable or fragile loads involve a greater risk on 
the part of the carrier, and the tariff for the carriage of such goods 
should be sufficiently high to offset the risk involved. Where insurance 
is carried, this must be considered as an item of cost in calculating 
the rate to be charged. ‘The length of the haul is naturally another 
prime consideration. — It is comparatively easy to consider this item, as 
the cost, as a rule, varies directly with the distance. ° Road conditions 
also directly affect operating costs and, hence, must be considered in 
establishing rates. Where the roads are good, operating costs are low _ 
and charges for transportation can be lessened accordingly. Where 
poor roads are encountered, the additional cost must be featured in the 
rate schedule. The perishability and the bylk of the load also should 
be considered. The transportation of highly perishable goods involves 
a risk which must be paid for.. Where goods are extremely light and 
bulky, it must be remembered ‘that the truck when fully loaded may 
not carry its capacity in weight ; ‘hence, operating costs will be increased 
per pound, and this must be reflected in the rates. Some operators © 
fail to consider competitive rates by railroad, electric line, boat line or 
other motor truck lines. It goes without saying that a profitable busi- 
ness will not be secured if rates are not in line with those of other 
carriers. It should be remembered, therefore, that careful considera- 
tion must be given to rates charged by other carriers. The class of 
service rendered will also directly affect the rate. Where complete 
delivery is made from the door of the shipper to the door of the con- 
signee and service is rendered which is not duplicated by the railroad, 
the additional service must be considered in fixing the rate. In many 
cases rural motor routes make delivery of goods much more quickly 
than does the railroad, and where time in transit is a consideration, 
the additional value of such prompt service is to be considered. Return 
loads bear a direct relationship to the primary rate in that the operator 
whe is assured of a profitable return load will be enabled to reduce 
his charges because of lessened cost per ton-mile. 
There are many other minor considerations to be gone over by the 
beginner in the motor truck industry, but those mentioned above are 
basic in nature. Some operators catering to a business which ordinarily 
would go by freight have established rates which compare directly 
with freight rates. Most operators do an express business and base 
their rates accordingly. In some districts, in the effort to establish a 
